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Ryanair suffers loss as it cuts fare prices

LONDON—Ryanair's strategy of cutting fare prices to keep planes full is costing it.

Europe's largest budget airline suffered a net loss of 35.2 million euros ($47.5 million) in the last three months of 2013, compared with a profit of 18.1 million euros a year earlier.

It reduced fares by an average of 9 percent in the quarter, the third of its fiscal year. That helped it attract 18.3 million passengers, up 6 percent on the year.

The figures Monday came after a profit warning in November, when the airline pledged to maintain discounts.

Ryanair is trying to change its corporate culture after customer criticism. The airline introduced fully assigned seating this week—a change from a model that required customers to form lengthy lines and scramble for seats.